Ahead of its initial public offering (IPO), Life Insurance Corporation (LIC) has asked policyholders to update their PAN details to ensure hassle-free participation in the proposed public offer.
Up to 10 per cent of LIC IPO issue size would be reserved for policyholders.
“In order to participate in any such public offering, policyholders will need to ensure that their PAN details are updated in the corporations records. Further subscribing to any public offering in India is only possible if you have a valid DEMAT account,” LIC said in a public notice.
Also read: Do you have an LIC policy? Here’s how to take part in the upcoming IPO
The LIC through advertisements has been asking policyholders to update their PAN as it important from a Know-Your-Customer (KYC) perspective for participation in the proposed public offering, as and when it takes place, subject to regulatory clearance.
Also telling policyholders that a DEMAT account is a must to subscribe to the IPO, LIC said if
a policyholder currently does not hold a valid DEMAT account, he or she should consider opening it at their own cost.
“You would incur costs towards opening of a DEMAT account and or PAN issuance and maintaining the DEMAT account or other ancillary costs. All such costs would have to be solely borne by you. No costs would be borne by the Corporation,” it clarified.
The Union Cabinet in July, 2021 cleared disinvestment of India’s largest insurer LIC and a panel headed by the finance minister has been authorised to decide on the quantum of stake dilution.
The government has already brought in required legislative amendments in the LIC Act for the proposed IPO through the Finance Act 2022.
In her Budget speech in February this year, Finance Minister Nirmala Sitharaman said the IPO of LIC would be floated in 2021-22.
Also read: LIC listing: India may allow 20% FDI in state-run insurer
The listing of LIC will be crucial for the government to meet its disinvestment target. The Centre aims to earn ₹1.75 lakh crore in the current fiscal from minority stake sale and privatisation.
Of the ₹1.75 lakh crore, ₹1 lakh crore is to come from selling the governments stakes in public sector banks and financial institutions. The remaining ₹75,000 crore would come as CPSE disinvestment receipts.
(With inputs from agencies)